The Portland daily press., 1887-05-18
THE PACIFIC RAILROADS.
The Commission Pumping Jay Gould

NEW YORK, May 1.-THE continuation of
the investigation before the Pacific Railway
Commission this morning, found the well
known broker, John Pondir, on the stand.
Pondir's evidence was glorifcation Of him.
self as the man who secured the first $2,000.-
600 for the Union Pacific from Durant and
and others. He went over the old story of
the Credit Mobilier, in which the names of
Jim Fisk, Jay Gould, Cakes and Oliver
Ames, John b. Alley and others figured
promin emily. and which has been made fa-
miliar to the public by the investigation of
the old Wilson GLAND committee. He took
occasion to vindicate Oakes Ames, saying
that he was an honorable man, and was
killed by the infamous stories told concern
ing him.
Jay Gould was the next witness. He has
resided in New York since 1858; during the
past % years, he has been connected with
railroads; his first connection with the Un-
ion Pacific was in 1878; in the spring of that
year he met Horace f. Clark in Chicago. He
spoke so highly of the property that he sent
an order to New York to buy at 3S and scale
down. "Mr. Clark was sick and about TO
die, and his stock was sold, my orders catch
ing 1t. The stock began to 60 down, and
was anxious" continued the witness. 81
asked Mr.. Alley what was the matter with
Union Pacific. 1t went down to 10 He said
that II had an immense floating Indebtedness
and S10,000,000 in funds due. / found that
Sidney Dillon and Oliver Ames could be re-
ned on among the directors, and we went to
work to find this floating debt. had 100000
shares in the stock at that time / became
member ofthe board in 1874, and was men,
her of fla nvapnfiva
lon, oliver AmeS and +. Gordon Dexter con-
tlnued to hold office as directors. As we i'm
proved the property the stock went up. l
went over the road twice year, while was
q director. | had no interest in the suit of
James Fisk, Jr., against the Union Pacific.
1 think David Dudley Field was one of Mr..
flsk's lawyers. He has acted for me. de-
ny emphatically that had any connection
with the Union Pacific before 1873; first
took interest in the Kansas Pacific in 1878,
and recall nothing of the proposed consoli-
datlon with the Union Pacific as early as
1875; there might have been something in
the press about it, but | am not responsible
for what floats about in the papers; remem-
Der nothing of consultation with Col
Thomas A. Scott at the Continental Hotel in
Philadelphia, concerning proposed consoli-
dation of the roads in 1870, nor do remem-
Der OF any action looking to a unity of inter.
ests between the Kansas Pacific and Colora-
do Central at that time. The Colorado Cen
1t had connection with the Union Pacific
to Cheyenne"
MI Gould produced Union Pacific time
table. with map to explain the connection
of the roads.
Don't You know, Mr.. Gould, that there
was'an agreement in 1875 for a union of the
Kansas Pa eifc and Colorado Central. where
by the stock of the Kansas Pacific was to be
$20,000,000?"
Now that you recall it, there was; but it
was never consummated. We were trying
to force pro rata with the Kansas Pacific,
and this was one of the attempts i think
must have seen Col. Scott in the connection,
Tor the st. Louis people had great confidence
IN him." The branch connecting with the
Union Pacific and Colorado Central was
built before 1878, but l don't remember ex-
aetly when. The effect of building this line
was to lessen the earnings of the Denver Pa
cific. have an indistinct recollection of an
agreement in 1875, where the Colorado traffic
was surrendered to the Kansas Pacific, the
Union Pacific taking all west of Cheyenne.
! increased my interest in Union Pacific
from 1878 to 1878. | owned about 100000
shares in 1873. The entire issue was $4,000
shares. | keep books of my transactions.
My bookkeeper, Ithink, was Mr. Morosini
lie began before 1878. Before that relied
on brokers.